A Low-Cost ETF With a Focus on Strong Businesses

Alex Bryan: iShares Edge MSCI USA Quality Factor ETF is a compelling, low-cost fund that should offer better risk-adjusted performance than the market over the long term.

This Silver-rated strategy invests in great businesses. It targets large- and mid-cap U.S. stocks with the best profitability, strongest balance sheets, and most consistent earnings growth relative to their sector peers. This sector-relative approach to stock selection leads to cleaner comparisons, but it can also cause the fund to own stocks with lower absolute quality characteristics than it otherwise would.